MCP Follow Up

MCP was entered as a half position, actually phased in starting with a half position Tuesday on the assumption that the probabilities were high (normally around 80% of all reversals have some sort of head fake move, in this case a stop run).

These are the exact words from the linked post above which was the opening of MCP as a new position Tuesday...

"As mentioned earlier, I thought MCP over and will open a partial position (long) in MCP, the risk management will leave room to add to MCP on a head fake/ Stop run move that will allow enough room in the risk management to add to MCP even if we had a stop run below the inrtraday lows of the year at $4.70."

Well the very next day our first head fake level was taken out at the $4.90 level and this morning the $4.70 level was taken out, volume pushed higher which is what we want to see.

MCP has their earnings tonight so a head fake move right before earnings is HIGHLY SUSPICIOUS AS A POSSIBLE LEAK.

I would like to see more on the intraday positive divergences, but we still have plenty of time.

 The daily chart shows the $4.70 level which was considered to be a likely head fake area and that's why I set price alerts to keep track of what's going on as certain levels are hit.

This is $4.70 on a 1 min. chart of today being taken out, note the stops hit, which is exactly what we want to see (volume up indicating that stop orders were taken out).

This is the 2 min chart nd if it were for the 2 min chart allone, I would have entered the second half of MCP yesterday, but I wanted to see the intraday 1 min go positive first and good thing because the lack of that positive divegrence led us to a new round of stops being taken out today, so I'm sticking with the 1 min chart going positive as confirmation.

While we have plenty of time intraday for that to happen, we don't have much time before earnings after the close today.

This 1 min is showing the VERY first hint of a positive divergence AND NOTE THAT IT ONLY STARTED AS THE STOPS LEVEL WAS FIRST TAKEN OUT AND PRICE FLATTENED OUT INTRADAY.

If you have 3C, keep an eye on the blue version's 1 min chart, otherwise I'd set price alerts for a move above $4.70, I'd check the volume as well, it's not as important as the stop out volume, but it can be a useful hint.

Keep MCP on your radar, this could potentially be a nice core long position and earnings leak.